Question
Prepare a flexible budget for 1 month showing the expected profit/loss from this online business. Assumptions Assuming the maximum number of clicks each day is
Prepare a flexible budget for 1 month showing the expected profit/loss from this online business.
Assumptions
Assuming the maximum number of clicks each day is 100, and that each advertisement click costs $0.30.
Assuming one customer is convinced to purchase the cake after every 15 clicks.
30% of each order is what Grab charges the business as a commission.
Per serving of cake for online delivery option
| Price ($) |
Fees for Marketing | $0.15 ((0.30*15)/30) |
Fees for Platform | $12 (40*0.3) |
Price of handling consumer complaints | $1.33 (40/30) |
Total costs | $14.48 |
Assuming that the business does well. Please prepare a flexible budget for 1 month showing the expected profit/loss from this online business.
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